Page 131 - ART® Study Manual html5 - flash

® “Home-Study Course” Study Manual Page 131

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Trading the “Inside Bar”

Of The ART® “One-Bar Reversal”

This technique is used to get into a reversal trade sooner than waiting
for the standard entry on the ART® “One-Bar Reversal”. This signal
gets you into the market with a closer stop-loss which allows for a larger
“Trade Size” compared to the standard ART® “Reversal” bar entry.

The ART® “Charting Software” labels the ART® “One-Bar Reversal”
signal bar. Then the market has to form an “Inside Bar”, a price bar
located after the ART® Reversal signal bar that has a high and low that
is “Inside” the signal bar’s high and low price. If an “Inside Bar”
forms, move your trade entry from the ART® “Reversal” signal price
bar to the high or low of the “Inside Bar” depending on if we are going
long or short (the ART® “Charting” Software” does not label this
“Inside Bar” trade).

The signal generated by the “Inside Bar” is only in the direction of the
anticipated or expected reversal trade originally generated by the
ART® “One-Bar Reversal”.

The initial stop loss for a bullish trade can either be one-tick under the
original ART® “Reversal” bar, or one-tick under the “Inside Bar”. Use
the ART® “Reversal” bar as your initial stop loss.

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